True or False

Exam Nume TRUE/FALSE. Write "T if the statement is true and 'F' if the statement is false. 1) Discretionary costs are not casily controllable compared to engineered costs. 1) 2) 2) The financial perspective of the balanced Scorecard identifies largeled customers and market segments and measures the company's success in these segments. 3) 3) McDonalds and Walmart are examples of companies that emphasize product differentiation over cost leadership 4) The cost leadership strategy is best for a company if the engineering staff is more skilled at creatively designing new products than at making process improvements. 5) An organization which uses product differentiation strategy will charge higher prices. 5) 6) 6) Productivity describes the relationship between different quantities of inputs consumed and the quantities of output produced 7) 7) Higher selling prices, rather than unique products or services provide a competitive advantage for the cost leader companies. 8) 8) One advantage of the total factor productivity is thal operations managers can use it to casily understand specific labor productivity issues. 9) 9) Strategy describes how an organization matches Its own capabilities with the opportunities in the marketplace to accomplish its overall objectives. 10) 10) Balanced Scorecards are almost exclusively utilized in profit-seeking organizations as nonprofits cannot benefil from focusing on financial perspectives such as net income and shareholder value. 11) Manufacturing overhead cost is an example of indirect engineered costs 11) 12) To achieve success, it is important to sel noninancial objectives as well as financial objectives. 12) 13) 13) An elleclive balanced Scorecard helps to communicate the strategy to all members of the organization by translating the strategy into a coherent and linked set of understandable and measurable operational targets. 14) 14) Downsizing is an Integrated approach of configuring processes, products, and people to match costs to the activities that need to be performed to operate effectively and efficiently in the present and future 15) 15) The amount of productive capacily available over and above the productive capacity employed to mect customer demand in the current period is the unused capacity. 16) Partial productivity and TFP measures work best together because the strengths of one offset the weaknesses of the other. 16) 17) 17) Cost effect of productivity for fixed costs is calculated by multiplying the difference in units of capacity (current year capacity units minus the previous year capacity units) by price per unit of capacity of the previous year, 18) The price-recovery component of the change in operating income measures solely the effect of price changes on revenijes but not costs. 19) 19) When analyzing the change in operating income, the strategy component of growth will increase when more units are sold. 19) 20) Discretionary costs arise from periodic (usually annual) decisions and have a measurable causo-and-effect relationship between output and resources used 20) 2